Suzlon stock slips 3% on seeking extension for FCCB payment

Suzlon Group, the world's fifth largest* wind turbine maker, today announced an update on the company's near term repayment obligations.

Suzlon Energy Limited issued US$ 200 mn Zero Coupon Convertible Bonds due October 2012 and US$ 20.8 mn 7.5% Convertible Bonds due October 2012. The meetings of the holders of the Bonds are proposed to be held on 10th October 2012.

The shares of the company was seen trading lower by 3.44% at Rs 16.56 on BSE at 12.50 pm IST. It touched intra-day low of Rs 16.25.

A company spokesperson said: "We intend to redeem the outstanding October FCCBs at the end of the proposed four month extension, subject to requisite approvals. We are actively working on various sources of funding; including from the sale of noncritical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets, and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt across various assets.

"We have sought this extension in order to have adequate time to complete this exercise, and meet the redemption obligations in complete alignment with all our stakeholders. We believe these initiatives will enable us to optimally allocate resources between our business requirements and debt obligations in a manner that will allow us to obtain relevant approvals from our senior secured lenders. With these measures we remain fully confident of meeting our obligations and preserving value for all our stakeholders."